DuPont Decomposition
Why does MAXHEALTH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.4% = 17.2% × 0.49 × 1.60
Latest: FY2026
Profitability
Net Margin
17.2%
15.6% →17.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.42x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.60x
1.46x →1.60x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.8 pp over 5 years. Driven by net margin improving (15.6% → 17.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.6% | 0.42 | 1.46 | 9.6% |
| FY2023 | ₹0Cr | ₹0Cr | 24.6% | 0.44 | 1.36 | 14.9% |
| FY2024 | ₹0Cr | ₹0Cr | 19.9% | 0.44 | 1.43 | 12.6% |
| FY2025 | ₹0Cr | ₹0Cr | 15.3% | 0.46 | 1.62 | 11.5% |
| FY2026 | ₹0Cr | ₹0Cr | 17.2% | 0.49 | 1.60 | 13.4% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.